Photo: Office of the President
Zelensky signed a law on the regulation of collection activities
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The law is intended to protect debtors from unscrupulous collectors who violate the law in order to force debtors to repay the debt.
President Volodymyr Zelenskyy signed a law on consumer protection in the settlement of arrears. About it informs Press Service of the Office of the President on Monday 12 April.
The law is designed to protect debtors from the actions of unscrupulous collectors.
“Today in Ukraine there are more than 200 so-called collection companies, whose services financial institutions turn to in cases of overdue debts from their clients. However, this area in Ukraine remains poorly regulated at the legislative level, therefore collectors often act in violation of the law to induce debtors to return debt “, – explained in the OP.
The new law introduces clear rules of conduct for both creditors and collectors in the settlement of problem debts. In particular, the document establishes requirements for creditors and collection companies, in particular: to comply with ethical behavior with the debtor; to inform him in case of attraction of a collection company or assignment of the right of claim to a new creditor; conclude contracts only with companies included in the register of collection companies of the NBU; control the actions of the involved collection companies. Failure to comply with these requirements is subject to fines.
“According to the law, before concluding a consumer loan agreement, the lender must inform the consumer about the possibility of attracting a collection company in case of non-repayment of the debt on time. The consumer loan agreement must reflect the consumer’s right to apply to the National Bank of Ukraine in case of violation of consumer lending legislation.” , – said in the message.
The law also establishes requirements for interaction with the consumer (or his representative) in the settlement of arrears. In particular, during the first communication, the creditor or the collection company must communicate their name, the name and surname of the representative, the legal basis for the appeal and the amount of overdue debt, and, at the request of the consumer, must also provide the relevant documents within seven working days.
In turn, the National Bank is empowered to monitor compliance by banks, other financial institutions and collection companies with legislation on the protection of the rights of consumers of financial services.
Recall, March 19 Rada adopted the relevant law… 274 People’s Deputy voted “for”.
Previously, it was repeatedly reported about fraudulent schemes involving collectors. So, in December, the SBU exposed credit extortion scheme.
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